Stock Market Today: Nifty, Sensex Settle At Record Highs As HDFC Bank, Infosys Rise

• Upgrade to ‘Buy’, Target Price at Rs 23; 28% upside potential

• Retains ‘High Risk’ rating

• Raises FY25-28E EBITDA by 3-7% on the back of 2-6% higher ARPUs.

• Target EV/EBITDA multiple raised by one notch to 12x driven by improved industry dynamics.

• TP in a bull case could rise to Rs 28, continget on a favourable outcome in the AGR case

• Peak of competitive intensity is behind us

• Tariff hikes in-line-with to slightly-ahead-of market expectations in terms of magnitude & timing.

• 5G monetisation has now been initiated by the telcos

• Local sales at 50,103 units in June 2024 vs 50,001 units in June 2023, up 0.20%

• Exports at 14,700 units in June 2024 vs 15,600 units in June 2023, down 5.77%

• Total sales at 64,803 units in June 2024 vs 65,601 in June 2023, down 1.22%

Source: Company statement

• RBI joins Project Nexus to allow cross-border P2P and P2M transactions with four ASEAN countries

• RBI to work with four ASEAN countries to link fast payment systems, like UPI, for such transactions

• Countries in the project include Malaysia, Phillipines, Singapore and Thailand

• Agreement signed on June 30

Source: RBI statement

• Fischer Medical Ventures Ltd. is in pact with Singapore-based Nervotec to market its technology globally.

Source: Exchange filing

• Zomato Ltd.'s 11.1 lakh shares or 0.01% equity changed hands in a bunch trade.

• The bunch trade happened on BSE at Rs 202.55.

• Buyers and sellers are unknown.

Source: Cogencis

• Rane Holdings to acquire balance 51% stake in joint venture company, Rane NSK Steering Systems for Rs 45 crore.

• Board approves settlement agreement with NSK, Japan & Rane NSK Steering Systems

Source: Exchange filing

• CASA rose 5.6% on year to Rs 28,042 crore

• Total business rose 15.2% to Rs 1.7 lakh crore

• Total deposits rose 14.4% to Rs 92,349 crore

• Advances grew 16.1% to Rs 77,709 crore

Source: Exchange filing

• Partnership to focus on middle and low-income segments in rural and semi-urban locations

• To focus on new to credit customers, or those who have not been tapped by larger institutions

Source: Company statement

• Godrej Properties Ltd. has acquired seven-acre land parcel in Bengaluru.

• The project to have estimated revenue potential of Rs 1,200 crore.

Source: Exchange filing

• Customers looking for upfront parity of price in EVs and ICE

• Looking at reducing prices further

• In scooters, have reached 15% penetration

• Need a ‘Mutual Funds’ moment for clean mobility

• Need to accelerate the development of charging infrastructure

Source: Swadesh Srivastava, Head, Emerging Mobility Business Unit, Hero MotoCorp at IESW 2024

• NCC Ltd. received orders worth Rs 355 crore in June related to company building division.

Source: Exchange filing

• NMDC cuts iron ore lump and fine prices by Rs 500 per ton for July 2024.

Source: Company

• Larsen & Toubro Ltd. received an offshore order in the range of Rs 1,000-2,500 crore from Oil and Natural Gas Corp.

Source: Exchange filing

• S.C. Murmu to be ED in charge of Supervision

• J.K. Dash to be ED in charge of Regulation

• Charulatha Kar to be ED in charge of communication, HR management and RTI Act

Source: People in the know to NDTV Profit

• Green hydrogen to be made in India in Tuticorin with support from Singapore, Japan

• GST rates are being aligned to global value chains

• India as a policymaker is trying to create an ecosystem where investments are encouraged

• Close to $500 million of potential exists in India

Source: Sunil Bharthwal, Commerce Secretary, IESW 2024

• Total domestic PV sales rose 23% to 40,022 units

• Total domestic sales rose 11% to 69,397 units

• Total tractor sales rose 6% to 47,319 units

• Domestic tractor sales rose 6% to 45,888 units

• Three-wheeler sales fell 3% to 6,184 units

Source: Exchange filing

• The brokerage has set the price target of Rs 2,025, which implied a 15% upside.

• The 22nd largest player in IPM, outperformed IPM in past decade by 600 bps

• The brokerage expects 13% organic domestic sales CAGR over FY2024-27E

• Believes high-margin CMO vertical to double by FY28E led by healthy order book

• Forecasts 14% sales CAGR and 17% EBITDA CAGR over FY2024-27E

• Expects 230 bps expansion in EBITDA margins over FY2024-27E

Key risks include:

• Any senior management exits

• Resurfacing of NDMA concerns relating to Rantac

• High domestic sales concentration

• Aggressive amortization policy of the acquired brands

Stock Of The Day: JB Chemicals Surges After Kotak Initiates 'Buy'

Godrej Properties Secures 11-Acre Land In Pune For Rs 1,800-Crore Project

• April-June growth to be softer than seasonality but expect 2Q commentary to be positive

• The weak start to the year on margins

• Sector has bottomed out on YoY basis in Q4FY24, likely to improve hereon

• On QoQ basis, growth trends likely to be soft with large divergence across companies

• Expect Infosys and LTIMindtree to be at higher end of growth, Wipro/TechM at lower end

• Expect most companies to retain FY24 outlook

• Infosys and TCS stack up well in terms of valuation and expectations

• Run up in Wipro makes it less favourable in term of risk reward

• HCLT needs strong execution to meet its guidance

• In mid caps, Coforge looks better than peers Mphasis/L:TTD/tata Elxsi/Cyient

Garden Reach Shipbuilders Shares Jump Over 10% On $54 Million Order Win

• Manorama Industries Ltd. has enhanced an overall fractionation capacity from 15,000 ton per annum to 40,000 ton per annum.

Source: Exchange filing

Market breadth was skewed in favour of buyers. Around 2,162 stocks rose, 923 declined, and 126 remained unchanged on BSE.

• Garden Reach Shipbuilders received a construction order worth nearly $21 million from Bangladesh.

Source: Exchange filing

The NSE Nifty 50 was 17.65 points or 0.1% lower at 23,992.95, and the S&P BSE Sensex was 10.62 points higher at 79043.35.

IndiGo Can Return 18% With Sustained Profitability, UBS Says On Upgrade

• The yield on the 10-year bond opened flat at 7.02%.

• It closed at 7.01% on Friday.

Source: Cogencis

Rupee Tracks Asian Peers To Open Little Changed Against Dollar

• Transformers & Rectifiers (India) Ltd. received an order worth Rs 72.5 crore from NCC Ltd.

• The company also received an order worth Rs 55.9 crore from Power Grid Corp.

• It has received an order worth Rs 20.1 crore from Adani Energy Solutions Ltd.

Source: Exchange filing

• Morgan Stanley maintained an underweight with target price Rs 967, which implied downside of 42%.

• Amara Raja now matches Exide on capability but lags on customer wins.

• Ramp-up timeline remain unknown

• Tie-up gives it LFP prismatic and cylindrical technology

• Already in use in India,Tata Motors buys from Gotion;

• Expects battery business to eventually reach low double-digit ROCEs

• Large customer wins will be key to track

• Scale will be key to generating returns in batteries as EV battery deflation continues

• Remain selectively overweight in the battery segment

• Will share more details in 1-2 months, prefer Exide over Amara

• Citi Research kept a 'Buy' on Bharti Airtel Ltd., and set the target price at Rs.1,750, which implied an upside of 20.7%.

• Bharti Airtel has announced average hike of 16%

• It has raised tariffs even in the low-end feature-phone segment

• The new tariffs help narrow the extent of Jio’s pricing discount to Bharti.

• Continue to assume ARPUs of Rs235/270/305 over FY25/26/27

• Remain positive from a medium-term view

• Would use any meaningful correction as an enhanced buying opportunity

• Maintain Equalweight on Tata Steel at Rs 145 target, which implied of 17% downside.

• Maintain Underweight on SAIL at Rs 113 target which implied 21% downside.

• Maintain Underweight on JSW Steel at Rs 650 target, which implied 31% downside.

• Maintain Underweight on Jindal Steel Power at Rs 655 target which implied 38% downside.

Tata Steel Converts $565-Million Debt In Arm Into Equity

• Price band changes from 5% to 20%: Tata Investment Corp., Wockhardt Pharma.

• Ex/record Dividend: GHCL Textiles, GHCL, Geojit Financial Services.

• Ex/record AGM: Tata Communications.

• Ex/record Demerger: Oriental Carbon & Chemicals.

• Moved to a short-term framework: PNB Gilts, Titagarh Rail Systems.

Jindal Stainless Fully Acquires Sulawesi Nickel Processing Industries

• Deepak Nitrite: Promoter Ila D Mehta bought 1.46 lakh shares on June 26.

• Tide Water Oil (India): Promoter Standard Greases & Specialities Pvt. bought 48,081 shares on June 27.

• Styrenix Performance Materials: Promoter Shiva Performance Materials sold 29 lakh shares on June 27.

• Star Cement: Promoter Laxmi Chamaria sold 84,354 shares on June 24 and June 25.

• Saurashtra Cement: Promoter Promilla Khanna sold 80,000 shares between June 19 and June 26.

• Steel Exchanger India: Promoter Umashiv Garments sold 1 crore shares on June 26.

JSW Neo Energy Gets LoA For 300 MW Wind-Solar Hybrid Power Projects From SJVN

Samhi Hotels Shareholder Trims Stake For Rs 193.40 Crore

Fidelity Sells HCLTech Shares Worth Rs 1,788 Crore; Mutual Funds, Morgan Stanley Among Buyers

• Vraj Iron and Steel: The public issue was subscribed to 119.04 times on day 3. The bids were led by institutional investors (163.9 times), non-institutional investors (208.81 times), and retail investors (54.93 times).

BEL Bags Rs 3,172 Crore Order From Armoured Vehicles Nigam

Market Poised For Gain As Nifty Eyes 24,336 Resistance Level, Says Analyst